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Bitcoin (BTC) surpassed the $100,000 threshold for the first time in two weeks, buoyed by renewed momentum following the expected confirmation of Donald Trump’s US election victory by Congress this week.
According to Bloomberg data, the market’s leading cryptocurrency climbed more than 4% over a 24-hour period to $102,500 on Monday, recording a weekly rise of 11%, its biggest rise since November 24.
Bitcoin Rally Resumption: Exceeds $100,000
BTC’s performance in 2024 saw a deceleration in late December as investors looked to lock in their gains. Nevertheless, enthusiasm for a pro-crypto The government under Trump has reignited interest, propelling Bitcoin to a record high of $108,000.
As Congress prepares to convene to certify Trump’s victory, market sentiment appears optimistic. Khushboo Khullar, a venture partner at Lightning Ventures who invests in Bitcoin-related companies, declared, “A super cycle is expected in 2025 due to regulatory changes made by the Trump administration.”
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A notable increase in investment in Bitcoin exchange-traded funds (ETFs) has also fueled this momentum. Investors poured a net $908 million into U.S. Bitcoin ETFs on Friday.
This signals the fifth highest influx since their launch in January 2024, following a historic net outflow of $680 million on December 19.
Another positive indicator for Bitcoin traders is the rebound in Bitcoin Coinbase Premium, which measures the price gap between Bitcoin on Coinbase and Binance.
After hitting its lowest point since Sam Bankman-Fried’s FTX crashed in 2022, the premium has recovered, indicating growing demand for Bitcoin among US investors.
Joe McCann, CEO of Asymmetric, a crypto hedge fund located in Miami, pointed out that ETF issuers primarily transact with Coinbase, implying that ETF demand can affect premium or discount rates .
Key Support Levels Under Watch
As the market looks towards 2025, Bloomberg highlights that Bitcoin’s path will largely depend on Trump’s dedication to his crypto-related commitments, encompassing a national Bitcoin reserve.
However, doubts persist about the longevity of the ongoing recovery. A recent MLIV Pulse survey found that 39% of participants considered Bitcoin the investment most likely to become a loser in 2025, the highest share of all choices.
Regarding technical analysis, market expert Morecryptoonl underlines that Bitcoin has formed a more distinct five-wave pattern, with a bearish outcome still possible if specific support levels are violated.
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Currently, the second wave is needed to maintain support, while the first wave is technically over but expected to reach a low of $100,800. Crucial support areas were identified between $93,144 and $96,554, which could be examined after the first wave validates its peak.
Regarding Bitcoin ETFs, Glassnode says the buying trend continues to be robust, due to seasonal influences. As inauguration day approaches, the market analysis firm wait higher buying activity from traditional financial investors, which could further impact Bitcoin price movements.
At the time of writing, BTC has fallen back towards the $101,888 level but is still making significant gains across all time frames.
Featured image of DALL-E, chart by TradingView.com
